Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Hydrogen fuel cell specialist AFC Energy aims for longer life fuel cells

"The ability to deliver this extended operational lifetime in our electrodes is the critical factor in reducing the levelized cost of power"
industrial plant
AFC is focused on converting waste hydrogen from the chemical industry

Fuel cell specialist AFC Energy plc (LON:AFC) believes its work with partner De Nora has the potential to slash the cost of hydrogen power.

In October, Adam Bond, chief executive, said there was “clarity over the roadmap to a power generation cost from the AFC Energy fuel cell stack of less than US$0.10/kWh.”

WATCH: AFC Energy kicks off work on 'landmark' hydrogen micro-grid project

Key to this is the ability to increase the life of the electrodes within the fuel cells.

"The ability to deliver this extended operational lifetime in our electrodes is the critical factor in reducing the levelized cost of power. 

"This would be an incredible outcome not only for AFC Energy, but for the fuel cell industry and the wider hydrogen economy, and will put our technology on a comparable footing with other low carbon, base load power generation technologies,” Bond said.

READ: AFC Energy unveils landmark fuel-cell micro-grid project

AFC and De Nora, an Italian firm, have a way to go yet, but an update in January reported that a new electrode pairing had gone on test in December and was expected to exceed the predicted life of one year and might even run for two years.

Work has also started on a further upgrade to the electrode anode and cathode pairings to enable them to run for four years.

Getting the electrodes to run for that length of time would bring the electricity costs down to below the target of US$0.10/ kWh - excluding the cost of hydrogen.

A newly designed fuel cell stack without solid nickel substrate frames, now demonstrated both at laboratory scale and industrial scale with improvement in stack performance has also reduced stack costs by up to 30%.

Commercial developments

AFC’s focus is the generation of power from waste hydrogen produced by the chemical industry.

EU-backed, the POWER-UP project is the world's largest operational alkaline fuel cell system at Air Products' industrial gas plant in Stade, Germany.

Other projects include a feasibility study  at Peel Developments’ Protos Industrial Park into the suitability of a fuel cell project.

The first commercial sale of an alkaline fuel cell system ( in 2017) was for PowerHouse Energy plc’s waste gasification system while a number of early stage contacts for systems in Korea and the Middle East.

Strong financial backing

AFC is still in the development stages of its business, something reflected in its financial numbers.

In the six months to April, there was an operating loss of £2.7mln with grant income under the European Framework Programme 7 for the POWER-UP and ALKOMMONIA projects the main source of its revenue.

Heavyweight backing though comes from Chelsea FC owner Roman Abramovic’s vehicle Ervington, the largest shareholder, and Schroders, which picked up an 8.44% interest through a £3.3mln investment in March 2017.

At 12.5p, AFC is valued at £46mln.

View full AFC profile View Profile

AFC Energy PLC Timeline

Related Articles

Honda car
August 22 2018
Ceres has signed five collaboration deals in two years
Hydrogen
July 12 2018
Work with partner De Nora has the potential to slash the cost of hydrogen power.
turbine
10:22
In 2017, Greencoat’s portfolio generated 1,457GWh of electricity over the past year or enough for 620,000 homes

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use